Ponzi

Madoff Feeder Fund Charged with Fraud

As if losing $7 billion of your clients’ money weren’t already bad enough for business: Bernard Madoff may be in jail, but the case isn’t closed. According to The Wall Street Journal, “Massachusetts securities regulators charged Fairfield Greenwich Group, a major feeder fund for Bernard Madoff, with fraud, saying the company breached its fiduciary duty to clients by failing to provide promised due diligence on its investments.” In 2005, Madoff coached Fairfield officials on how to respond to questions from SEC attorneys who were looking into questions raised by Harry Markopolis. Bernie, however, shouldn’t look forward to having any friends join him in jail: The charges are not criminal.